Google reportedly offered Netflix special Play Store terms to keep the streaming giant happy.
Google, like Apple, charges a 30% commission on all sales and subscriptions that happen via the Play Store. For platforms that offer subscription services, such as Netflix, Spotify and others, giving up 30% of their monthly revenue is a tough pill to swallow.
Some of these services starting looking at alternative payment methods, methods that bypassed Google and the cut they take. The company has pushed back, enforcing the fee it charges — at least with some.
In the case of Netflix, however, Google offered the company a “significantly reduced revenue share” in an effort to keep the streaming giant happy and prevent it from pursuing alternatives, according to The Verge. The information came to light as part of an antitrust case against Google being pursued by several states.
In a statement to The Verge, Google said: “All developers are subject to the same policies as all other developers, including the payments policy. We’ve long had programs in place that support developers with enhanced resources and investments. These programs are a sign of healthy competition between operating systems and app stores and benefit developers.”
Only time will tell if the antitrust case will prove successful. In the meantime, Google’s ability to take a hardline stance has no doubt been compromised by the revelation that it will offer better deals under certain circumstances.